A key part of most modern marketing campaigns is choosing and targeting the right audience for a particular product. This tactic has led to more effective and profitable advertising campaigns, but when marketers don't consider all the potential audiences for a product, a lot of potential sales can be left on the table. A recent study from RetailMeNot suggests that a demographic they call the "Household Enthusiast" should be a target audience in most campaigns.
According to RetailMeNot, "a Household Enthusiast is part of a unique audience that spans across millennial and Generation X demographics. They live in a household with at least one other person, often including children and spouses, and they are responsible for making the final decision on items purchased within the home for multiple people."
Besides being responsible for the buying decisions of other people in the household, there are several reasons marketers should target the Household Enthusiast demographic. The RetailMeNot study notes that Household Enthusiasts are savvy shoppers who generate 15 percent more income than the average consumer. They shop online an average of 3.6 times per month and make purchases in a physical store at least 5 times per month. And on average, a Household Enthusiast spends 51 percent more than the millennial consumer and 18 percent more than the general deal-seeker in a 6-month period.
"The Household Enthusiast represents a large and important consumer segment for retail and brand marketers. These savings-minded individuals span generations, and they wield the purchasing power for their households," said Marissa Tarleton, chief marketing officer, RetailMeNot, Inc. "In today's competitive retail environment, it's more important than ever for retailers and brands to reach Household Enthusiasts with relevant, timely and personalized messages and offers."
When trying to gain the attention of Household Enthusiasts or trying to convince them to buy, strong discounts work more often than not. Among those surveyed by RetailMeNot, 76 percent of Household Enthusiasts say an offer or discount will be the deciding factor in a product purchase they are on the fence about. This is a higher response than what was given for products with free shipping (58 percent), that had positive online reviews (35 percent) or it was an item for which the customer had a dire need (33 percent).
A separate RetailMeNot study was analyzed to see how Household Enthusiasts shop and how marketers can use that to create better and more effective marketing campaigns. The study found that nearly nine out of 10 (89 percent) of Household Enthusiasts actively compare prices of the same product across different brands and retailers until they are sure they have found the best deal. More than eight in 10 are multitasking when shopping online (87 percent) or in physical retail locations (82 percent).
The study also suggests using mobile and email marketing can be effective with this target demographic. The vast majority of the survey respondents (84 percent) were likely to do their shopping on mobile devices, most often because it allows them to shop anywhere at any time (72 percent).
The researchers noted that more than half (53 percent) of the survey respondents that met the Household Enthusiast profile said that a personalized shopping experience would make them more likely to be loyal to a brand or retailer. Two-thirds (67 percent) said they enjoy personalized email reminders from brands and retailers, including personalized offers, or highlighting previously viewed products. This includes the 56 percent who want a special email to recognize a day such as their birthday.
This RetailMeNot report shows that Household Enthusiasts are a demographic that most marketers should be interested in. Even if the product doesn't directly relate to the demographic, Household Enthusiasts will play a role in the final decision and there are easy ways to target this demographic.
For more recent studies that can help business owners and marketers, read this article on a Pew Research Center study about the ways teens use social media.